[Nexus 7 Q&A, Help & Troubleshooting] CARUPANBOW:
So far this is what I got

Hi

So far this is my method to get (partial) ad hoc support for my N7 (wifi):

1) Start by rooting your device (you can use the Nexus 7 Root Toolkit).

2) Install CWM Recovery so you can install custom kernels.

3) Download and install this kernel https://github.com/monk-dot/SPAN/blob/master/kernels/ASUS%20Nexus%207/myupdate-nexus7.zip

4) Download and copy this wpa_supplicant file http://xdaforums.com/showthread.php?t=1806937 into the /system/bin folder, be sure to set your wifi connection off, make a backup of the original file and after copying the file check the permissions to be 755

5) Create a text file with the following commands:

wpa_cli -p/var/run/wpa_supplicant scan
wpa_cli -p/var/run/wpa_supplicant scan_results
wpa_cli -p/var/run/wpa_supplicant remove_network 0
wpa_cli -p/var/run/wpa_supplicant ap_scan 2
wpa_cli -p/var/run/wpa_supplicant add_network
wpa_cli -p/var/run/wpa_supplicant set_network 0 ssid '"JOIKUSPOT"'
wpa_cli -p/var/run/wpa_supplicant set_network 0 scan_ssid 1
wpa_cli -p/var/run/wpa_supplicant set_network 0 frequency 2412
wpa_cli -p/var/run/wpa_supplicant set_network 0 mode 1
wpa_cli -p/var/run/wpa_supplicant set_network 0 group WEP40
wpa_cli -p/var/run/wpa_supplicant set_network 0 key_mgmt NONE
wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_key0 '"12345"'
wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_key1 12345
wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_tx_keyidx 0
wpa_cli -p/var/run/wpa_supplicant save_config
wpa_cli -p/var/run/wpa_supplicant reconfigure
wpa_cli -p/var/run/wpa_supplicant enable_network 0
wpa_cli -p/var/run/wpa_supplicant select_network 0

Replace JOIKUSPOT with the ssid of your ad hoc network and set your password on the wep_key0 and wep_key1 variables, if you are using an open network just delete this lines:

wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_key0 '"12345"'
wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_key1 12345
wpa_cli -p/var/run/wpa_supplicant set_network 0 wep_tx_keyidx 0

6) Save the file "adhoc.sh" (be sure to save it in UNIX format, you can use notepad++ for this) and copy it into your device (I saved my script in /sdcard).

7) Turn the wifi connection back on and with a terminal emulator/ADB run the scrit

#cd /sdcard
#sh adhoc.sh

And now we're done!

You can see in your wifi settings your ad hoc network connected. But there are some issues, I cant see other networks on the list, even when I try to search for new networks, I can browse the web but cant connect to the play store, and with BlueVPN you could browse the store but couldn't download apps, the wifi icon in the notification bar is also gray color, after searching the forums this could mean I cannot connect to google services, but I still receive gmail notifications.

Well, I'll have to research more, but at least I think we're in the right way, to me this is a kernel/wpa_supplicant issue, I really wish some expert could help us out, or else I'll have to get into kernel compiling, I have a little linux experience and its been a while I dont get my hands into programming, but I'm not giving up just yet.

P.S: After checking with the terminal emulator, I started the command wpa_cli and this is the output I got:

root@android:/ # wpa_cli
wpa_cli
wpa_cli v2.0-devel-4.2.1
Copyright (c) 2004-2012, Jouni Malinen <j@w1.fi> and contributors

This software may be distributed under the terms of the BSD license.
See README for more details.

Using interface 'wlan0'

Interactive mode

<3>Trying to associate with SSID 'JOIKUSPOT'
<3>Association request to the driver failed
>

There seems to be a driver problem, I'll take a look into it too as soon as I can.

BTW I found this wpa_supplicat / wpa_cli files from this post http://xdaforums.com/showthread.php?t=1980021 since the stock rom doesnt come with the wpa_cli command, these files seem to be for ICS but I tried them on JB and they work too.